Net earnings for the year rose to a new high of $4.34 billion, up 8% from a year ago. Strong performance in 2019 was supported by broad-based growth across all business segments.
Return on equity improved to 11.6% driven by record earnings in 2019.
Net Profit After Tax
$4,343
million
+ 8%
Return on Equity
11.6
%
+ 0.3% pt
Net interest income ($ million)
Non-interest income ($ million)
Non-interest income/Total income (%)
Total Income
Total income rose 10% to cross the $10 billion mark in 2019, led by healthy growth in client franchise as well as an improvement in trading and investment income.
Net interest income grew 6% to $6.56 billion, driven by higher average gross loans for the year.
Net fee and commission income increased 3% to $2.03 billion, led by double-digit growth in wealth management and credit cards. Other non-interest income rose to $1.44 billion, with stronger treasury flows and improvements to investment securities.
Total Income
$10,030
million
+ 10%
Singapore 57%
Southeast Asia 27%
North Asia 10%
Rest of the World 6%
Overseas Total Income Contribution
Total income from overseas was marginally lower at 43% in 2019 as compared with 44% a year ago.
The overseas franchise continued to show good progress as cross-border connectivity improved.
43.0
%
- 1.0% pt
CET1 CAR (%)
Total CAR (%)
Capital Adequacy Ratio (CAR)
As at 31 December 2019, the Group’s strong capital position remained well above the MAS minimum requirements with Common Equity Tier 1 ratio and Total CAR at 14.3% and 17.4% respectively.
CET1 CAR
14.3
%
+ 0.4% pt
Total CAR
17.4
%
+ 0.4% pt
Loans ($ billion)
Deposits ($ billion)
Loan/Deposit ratio (%)
Customer Loans/Deposits
Net customer loans grew 3% from a year ago to $265 billion in 2019 as the Group moderated loan origination towards the end of 2019 amid macro uncertainties. Customer deposits grew 6% to $311 billion, led by higher fixed deposits and savings deposits. The Group’s funding position remained stable with healthy loan-to-deposit ratio at 85.4% as at 31 December 2019.
Note: Net customer loans were net of total allowances.
Net Customer Loans
$265
billion
+ 3%
Customer Deposits
$311
billion
+ 6%
Loan/Deposit ratio
85.4
%
- 2.8% pt
$ billion
Singapore 139
Southeast Asia 63
North Asia 43
Rest of the World 24
Loans by Geography
Singapore, which accounted for 52% of Group loan base, registered 1% growth year on year to reach $139 billion while overseas contributed a healthy growth of 4%.
Note: Loans by geography are classified according to where credit risks reside, largely represented by the borrower’s country of incorporation/operation for non-individuals and residence for individuals.
$269
billion
+ 3%
Five-Year Group Financial Summary
2015
2016
2017
2018
2019
Selected Income Statement Items ($ million)
Total income1
7,807
7,790
8,563
9,116
10,030
Total expenses1
3,356
3,425
3,739
4,003
4,472
Operating profit
4,451
4,365
4,824
5,113
5,558
Net profit after tax2
3,209
3,096
3,390
4,008
4,343
Selected Balance Sheet Items ($ million)
Net customer loans
203,611
221,734
232,212
258,627
265,458
Customer deposits
240,524
255,314
272,765
293,186
310,726
Total assets
316,011
340,028
358,592
388,092
404,409
Shareholders’ equity2
30,768
32,873
36,850
37,623
39,637
Financial Indicators (%)
Cost/Income ratio
43.0
44.0
43.7
43.9
44.6
Non-performing loans ratio
1.4
1.5
1.8
1.5
1.5
Return on average ordinary shareholders’ equity
11.0
10.2
10.2
11.3
11.6
Return on average total assets
1.03
0.95
0.98
1.07
1.08
Return on average risk-weighted assets
1.74
1.51
1.63
1.93
1.90
Capital adequacy ratios
Common Equity Tier 1
13.0
13.0
15.1
13.9
14.3
Tier 1
13.0
13.1
16.2
14.9
15.4
Total
15.6
16.2
18.7
17.0
17.4
Per ordinary share
Basic earnings ($)
1.94
1.86
1.99
2.34
2.55
Net asset value ($)
17.84
18.82
20.37
21.31
22.33
Net dividend (cents)3
90
70
100
120
130
Dividend cover (times)3
2.22
2.73
2.04
2.00
2.00
With effect from 1 January 2018, total income is presented net of fee and commission expense. The earlier comparative figures have been restated to conform with this presentation.
Relates to the amount attributable to equity holders of the Bank.
Included a special dividend of 20 cents in 2017, 2018 and 2019 respectively. 2015 included UOB’s 80th Anniversary dividend of 20 cents.
Healthy profit growth by business segment
* Income derived from the treasury flow from Group Retail and Group Wholesale Banking customers is reflected in the income of the respective business segments.
